Airport terminal may be delayed

The Dublin Airport Authority (DAA) will not be able to meet its deadline for opening terminal two unless it receives the green light from An Bord Pleanála by the end of this month.

"We need to have planning clarity by the end of June to begin preliminary construction activity by mid July if we are to deliver an operational facility before the end of 2009 as the Government has directed," DAA chairman Gary McGann said yesterday.

The board began a three-week planning hearing in April and has yet to issue its decision on terminal two, which is part of a €1.2 billion redevelopment at Dublin airport.

Ryanair has indicated that it will seek a judicial review if An Bord Pleanála approves the project.

Mr McGann said that in the event of the board approving the terminal, the DAA would press ahead with construction activity, regardless of any legal challenges, unless otherwise directed by a court.

"Unless there is some legal constraint to prevent us from doing so then yes, that is our plan," he said.

Mr McGann said the company had also accepted a decision from the aviation regulator on airport charges. Cathal Guiomard recently indicated that charges would remain unchanged up to 2009 but that appropriate increases would be allowed when terminal two is operational.

DAA had sought an immediate increase in fees to €7.50 a passenger.

Mr McGann's comments followed the publication of the DAA's annual report.

This showed that Dublin, Shannon and Cork airports handled a record 27.8 million passengers in 2006, an increase of 14 per cent on 2005.

The DAA's turnover rose by 12 per cent to €591 million while its profit, excluding exceptional gains, rose to €69.5 million from €50 million in 2005.

The airport manager recorded an after-tax profit of €166 million when exceptional items were accounted for. Group operating costs increased by 9 per cent to €357 million.

Dublin was again the leading performer among the three international airports.

It handled 21.2 million passengers last year, up from 18.5 million in 2005.

It is now the 16th busiest airport in the world, the DAA said.

Shannon catered for 3.6 million people, a rise of 10.2 per cent while the numbers travelling through Cork increased to 3 million in 2006 from 2.7 million in the previous year.

Great Southern Hotels was the laggard among the group's divisions. Its revenues fell by 19 per cent to €35 million during the year while the subsidiary made a €4.7 million loss.

Declan Collier, DAA's chief executive, said a full-year loss of €8 million had been projected. The hotel chain sale last year earned DAA an after-tax profit of €125 million.

The DAA also netted a profit of €2.7 million on the sale of its stake in Hamburg airport but took a charge of €31.5 million for restructuring costs relating to Shannon airport.

Mr Collier was paid €688,000 by DAA in 2006. He earned €331,000 in 2005, having joined DAA on April 4th that year.

Mr Collier was paid a basic salary of €315,000, fees of €17,000 and a performance-related bonus of €178,000.

He also received "pension contributions and other taxable benefits" of €178,000.